Ashok Leyland is riding multiple tailwinds at once viz-a-viz a sharp uptick in exports led by the GCC, a strong domestic CV cycle driven by freight demand and fleet replacement and an expanding electric bus strategy that now includes a potential manufacturing footprint in Indonesia.

Speaking on the sidelines of the company’s Q3FY26 results announcement, Executive Chairman Dheeraj Hinduja and Chief Executive Officer Shenu Agarwal detailed how the company’s international operations, EV roadmap, new product launches and capex programme are aligning to position the CV maker for sustained growth into FY27.

Hinduja highlighted that exports have been extremely good this year with particularly strong traction from Saudi Arabia and the UAE.

“The Saudi market and the UAE market continue to be very strong. We have developed products that are very suitable for these economies and our Ras Al Khaimah plant is working nearly at full capacity,” he said.

The GCC markets are now a key growth engine within Ashok Leyland’s international portfolio and overall overseas operations are expected to close the year on a robust note. The near-full utilisation at the facility underlines not only demand strength but also the company’s increasing localisation and relevance in these markets.

Furthermore, a recent MOU with PT Pindad in Indonesia marks Ashok Leyland’s intent to deepen its presence in Southeast Asia. Hinduja noted that the agreement was signed only last week and is aimed at building a much larger footprint in a sizeable market.

“This opportunity allows us to not only focus on electric buses but also on defence products,” he said, indicating that the partnership has a wider scope than just EV mobility.

While still in early stages, the understanding is that the collaboration could evolve into local manufacturing of vehicles in Indonesia for the domestic market, strengthening Ashok Leyland’s ASEAN presence while aligning with local industrial priorities. “We see good opportunities going forward in the Indonesian market,” Hinduja added.

Promising Q1FY27

On the near-term outlook, Hinduja said the momentum seen from Q1 through Q3 has continued into Q4. “The current quarter is looking very good. We have seen steady growth from Q1, Q2 and Q3, and this current quarter is also looking very strong,” he said, citing CRISIL estimates that suggest the company could close the year with overall growth of 10–12 percent.

Looking ahead, while Q1 is traditionally softer for the industry, the company is seeing encouraging signs. “Generally, Q1 is slightly slower than the rest of the year but at the moment the indications of Q1 are also very good,” he noted.

This optimism is underpinned by what the company believes is not a temporary spike but the start of a sustained replacement-led demand cycle. Agarwal pointed to January’s industry data, where the MHCV segment grew around 27 percent and LCVs over 20 percent as evidence of structural demand.

“We do believe that this is not a short-term blip because of GST. This is a result of overall growth in the consumption economy, which is leading to higher freight demand and higher freight rates,” he said. India’s truck fleet age is currently at an all-time high and the improved freight environment appears to have triggered a long-awaited replacement cycle.

“If the industry was waiting for some kind of a trigger to start this new replacement cycle, we believe that has now happened, and therefore it will go for a longer run,” Agarwal said. A major part of Ashok Leyland’s MHCV strategy lies in the launch of Hippo and Taurus, developed over the past couple of years.

“These products truly represent best-in-class performance and reliability,” Agarwal said. Both trucks deliver peak torque of around 1,600 Nm, among the best in the category and use upgraded driveline aggregates to improve reliability in tough applications such as tippers.

On the tractor side, the focus is on improving turnaround time for customers through higher power and heavy-duty aggregates. “The whole range will be launched between now and April and thereafter we will use the full potential of these products,” he added.

EV demand rising

Despite reports of a slowdown in staff and school bus segments, Ashok Leyland says its order book remains strong across both conventional and electric buses. “Our bus order book is very healthy and very strong at the moment,” Hinduja said.

He noted that the new Lucknow greenfield plant, completed in a record 14 months, has come at the right time to support increased bus demand. The plant is primarily focused on EVs, with phase one capacity of 2,500 units, scalable to 5,000 units.

Agarwal attributed recent industry blips in bus growth to timing issues in STU orders rather than any fundamental demand weakness. “The sentiment is very, very positive even in the staff and school sectors,” he said. Agarwal emphasised that electrification will not be uniform across segments.

“Buses are seeing a huge spike in government purchases. We are very, very optimistic about the electric bus business,” he said. Switch, the company’s EV arm, is fully ready with products for India and overseas markets. A manufacturing base for EV buses is also being set up at the RAK plant, expected to be operational in about 12 months.

Electrification is also expected to gain traction in the 2–4 tonne and intermediate CV categories, where Ashok Leyland was among the first to launch electric offerings. While Ashok Leyland did not directly win tenders in the last 10,000-bus PM e-Bus Sewa round, Switch secured significant orders through an infrastructure partner. Both entities plan to participate in upcoming tenders.

The government’s plan to induct over 50,000 electric buses into STU fleets over the next four to five years is seen as a major opportunity. Switch has already exported EV buses to Mauritius and received an order for 45 buses from Bhutan, underlining its growing international footprint.

Market segments

The company acknowledged some commodity cost pressure in recent months, driven not by steel but by spikes in certain precious metals. This has pushed up Q3 material costs sequentially.

Hinduja expects this pressure to ease within three to four months. Meanwhile, the company is doubling down on efficiency, waste reduction and cost control. Ashok Leyland will close the year with capex of around INR 10–11 billion and plans to invest about INR 10 billion annually over the next two years towards its Centre of Excellence and factory projects.

Agarwal said the company has also consciously grown non-domestic CV businesses including industrial engines, power solutions, defence and spares to reduce dependence on domestic MHCV volumes. “This reduces our break-even point from MHCV domestic sales and gives a lot of strength to the company for future growth,” he said.

Despite being a late entrant in LCVs, Ashok Leyland now holds around 12 percent market share and insists it will not chase growth through discounting. “Our industry is basically TCO-focused. If the customer sees extra value, there is no hesitation in paying more,” Agarwal said, pointing to digitisation, AI-led service initiatives, reliability and turnaround time as key differentiators.

For Ashok Leyland, the strategy is clear with differentiated products, strong service, rising exports, EV readiness and a favourable domestic cycle, all converging as it prepares for the next phase of commercial vehicle growth.

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Ashok Leyland, the Hinduja Group’s Indian flagship and a leading commercial vehicle manufacturer, has entered a strategic vehicle financing partnership with Kerala Grameena Bank through a signed Memorandum of Understanding. The agreement is designed to provide customers purchasing Ashok Leyland vehicles with customised and convenient financing solutions.

The MoU was formalised by Viplav Shah, Head of LCV Business at Ashok Leyland, and Gundekar Harish Gangadhar Rao, General Manager of Kerala Grameena Bank. Vimala Vijayabhaskar, Chairperson of Kerala Grameena Bank, was present during the signing.

Under the partnership, Kerala Grameena Bank will deliver end-to-end financial solutions to Ashok Leyland customers. The collaboration seeks to improve customer convenience through vehicle loans featuring flexible and easy-to-manage repayment options tailored to individual needs and preferences.

Shah said, “Ashok Leyland is delighted to partner with Kerala Grameena Bank to provide our customers with attractive, accessible and customised financing solutions. This strategic partnership will further enhance the accessibility of our innovative range of commercial vehicles, enabling businesses and fleet operators to invest with greater confidence and financial flexibility. Powered by cutting-edge technology and engineered to deliver industry-leading total cost of ownership, our vehicles are designed to enhance customer productivity and profitability. Together with Kerala Grameena Bank, we look forward to creating greater value for our customers and supporting their growth journeys.”

Vijayabhaskar said, “Kerala Grameena Bank is pleased to partner with Ashok Leyland to offer seamless vehicle financing solutions. This association reflects our dedication to serving the diverse financial needs of commercial vehicle customers. We are confident that this collaboration will enable us to extend our reach and provide tailored financing options to support the growth of businesses in the commercial vehicle segment in the state of Kerala.”

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Scania Commercial Vehicles India unveiled the new G 560 Super 10x4 Mining Tipper at Bauma Conexpo India 2026. It marks the expansion of the Swedish truck maker's Super range of heavy-duty trucks. Combining power, robustness and reliability to perform in challenging environments such as mining and other off-highway applications, the G 560 Super is powered by a 560 hp 13-litre engine that produces 2,800 Nm of peak torque to support superior fuel efficiency and lower CO₂ emissions. Paired with the engine is the Scania’s G33 Opticruise gearbox. 
The 10x4 axle configuration features three steerable axles and heavy-duty rear axles, providing the strength and capability required for challenging operations. With a 32.5 cu. m SAE heap volume and a technical gross vehicle weight of 71 tonnes, the G 560 Super is designed to support high-volume material movement and has a robust chassis at its core. The durable Hardox 450 steel rock body is capable of withstanding the rigours of demanding mining operations. The spacious G Series cab, smart displays and real-time vehicle monitoring enhance driver comfort, safety and ease of operation.
“The Super is already an important part of our offering in India, and with the reveal of the G 560 Super 10x4, we are taking the next step by bringing more products with Super power to our customers. Our focus is on bringing the right technology for the right application and, importantly, providing our customers with a complete solution that delivers value beyond the vehicle itself," said Silvio Munhoz, Managing Director, Scania Commercial Vehicles India Pvt. Ltd.
The G 560 Super 10x4 is already at some customers of Scania in India undergoing 'seeding' Once that is complete and the customers get an experience of its capabilities in real-world mining operations, it will be made commercially available.

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Sany India showcased 31 machines at Bauma Conexpo India 2026. Among these were 13 new product launches across its business units under the theme, 'Forging the Future Together'. Highlighting a diverse portfolio that consists of excavation, deep foundation, road construction, mining, port machinery, aerial work platforms, material handling and heavy-duty transportation, the company drew attention to its focus on technology development; on electrification in the heavy machinery space; sustainability and application-led engineering. 
A good number of exhibits pointed at the shift towards electric powertrains. The electric excavators, for example. The wheel loaders to electric mining trucks, mining tippers, reach stackers, aerial platforms and heavy-duty vehicles, for example. 
Interesting were the SY215C-9LC Quarry, SY210C-9 Quarry and SY215E electric excavators that will be launched soon in the Indian market. The others were the SW936E and SW956E electric wheel loaders; the STR90C-10 PRO and SSR110C-10 PRO soil compactors; the SRSC45E3 electric reach stacker; the SCP350C2 diesel heavy-duty forklift, the SPT42 42-metre telescopic boom lift, SPS1414HA electric Scissor lift and SPT26AC electric telescopic boom lift; the SCP30 3-ton forklift, and the 5565E electric tractor as well as the 3555E electric tipper with a 462-kWh battery configuration.
“India’s journey towards Viksit Bharat is creating tremendous opportunities for the construction and infrastructure equipment industry. At SANY, we see ourselves as a catalyst in this journey by bringing together technology, local capabilities and solutions that respond to the evolving needs of our customers. Our 31-machine showcase, including 13 new launches, reflects this commitment." "The growing presence of electric equipment across our portfolio demonstrates our belief that productivity and sustainability must move forward together," said Deepak Garg, Vice Chairman & Managing Director, Sany India
With a comprehensive manufacturing facility at Chakan (Pune), the company has invested in local capabilities for a 'made in India for the world' approach. Developing solutions that address Indian operating conditions while contributing to global requirements, Sany India is working on a localisation-led approach. 
 

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Daimler India Commercial Vehicles (DICV) has reaffirmed India's strategic value within Daimler Truck after the formation of the ISEAA customer region for the Mercedes-Benz Trucks segment. The company also outlined BharatBenz's next growth phase, driven by product innovation, customer ecosystem expansion and continued investment.

The Mercedes-Benz Trucks segment houses two brands: Mercedes-Benz Trucks and BharatBenz. DICV serves Indian customers under BharatBenz, while the Mercedes-Benz Trucks brand caters to South-East Asia, Australia-Pacific and other markets. Under a new operating model, the segment is divided into Europe, LAMEA, China and ISEAA regions. ISEAA unites previously separate markets under one customer-focused structure.

DICV anchors the ISEAA region, placing India at the centre of a framework spanning India, South-East Asia and Australia-Pacific. This reflects DICV's growing role as a manufacturing, engineering and export hub. Since operations began, DICV has exported over 75,000 trucks and buses and more than 330 million parts to over 70 markets, and supplies medium-duty transmissions from Chennai to Daimler Truck plants in Germany. Covering 42 countries and nearly 2.8 billion people, ISEAA offers substantial long-term growth, with commercial vehicle demand expected to rise over 5 percent annually.

DICV is accelerating BharatBenz's transformation, targeting safer, more productive transport solutions. With India's safety norms evolving, BharatBenz is readying its portfolio with Advanced Driver Assistance Systems calibrated for Indian conditions. Building on HX and Torqshift launches in construction and mining, BharatBenz continues bringing globally proven Daimler Truck technologies to India. Torqshift Automated Manual Transmission, proven worldwide and adapted for Indian duty cycles, improves driver comfort, reduces fatigue and lowers Total Cost of Ownership.

DICV keeps investing in a customer ecosystem maximising uptime and lifecycle value. BharatBenz's TruckConnect digital fleet management solution enables performance monitoring and data-driven insights. The BharatBenz Rakshana programme now services over 98 percent of vehicles within 48 hours. DICV plans to expand its service network from 430 touchpoints to 600 by 2030, focusing on northern, eastern and north-eastern India.

India's expanded role is backed by continued investment in local manufacturing, engineering and technology. These build on DICV's recently announced additional investment of approximately INR 40 billion in Tamil Nadu under a non-binding facilitation MoU with the state government. This takes DICV's cumulative investment in India beyond INR 145 billion. DICV operates with 92percent localisation and is supported by more than 400 local suppliers, strengthening its ability to develop products for Indian and global markets.

Torsten Schmidt, CEO & Managing Director, Daimler India Commercial Vehicles and President Mercedes-Benz Trucks Customer Region ISEAA, said, "India has long been an important market for Daimler Truck and the home of BharatBenz. Through the new ISEAA customer region, we are bringing India, South-East Asia and Australia-Pacific closer together to strengthen collaboration, share capabilities and respond faster to customer needs across these markets. DICV serves as the anchor entity for the region, building on its established strengths in manufacturing, engineering and exports. For our customers in India, BharatBenz remains focused on delivering products and services designed specifically for local operating conditions, while benefiting from the scale, expertise and collaboration of the broader Mercedes-Benz Trucks segment.”

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